Mr. Stephen Lemieux reports

TITAN MEDICAL REPORTS OPERATING AND FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR END 2022 AND ANNOUNCES AVAILABILITY OF MATERIALS FOR THE 2023 ANNUAL MEETING OF SHAREHOLDERS

Titan Medical Inc. today released its financial results for the three and 12 months ended Dec. 31, 2022. The company also announced that its 2023 annual meeting is scheduled for Friday, June 30, 2023, at 4 p.m. ET to be held virtually.

Recent activities:

• On May 26, the company announced a non-exclusive licence agreement with a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery for an upfront payment of $7.5-million (U.S.).
• On May 29, as a result of the strategic review process announced on Nov. 30, 2022, the board of directors of Titan approved a strategic transition in the company's business from the development and commercialization of robotic-assisted surgeries (RAS) technologies to evaluating new opportunities to further develop and license its intellectual property. Titan continues to retain the rights necessary to develop and commercialize RAS technologies, should it choose to do so, including the two-instrument Enos single-access RAS system and, as announced on Jan. 9, 2023, a three-instrument single-access RAS system that builds on the Enos system technologies.
• On May 29, the company announced executive leadership team changes effective June 1, 2023, reflecting the company's strategic transition and to reduce operating expenses in the business, including the appointment of Paul Cataford as interim president and chief executive officer, and Chien Huang as chief financial officer.

Financial highlights

Note that the financial review herein discusses the business as of Dec. 31, 2022. As part of the strategic review and as previously disclosed, the company significantly reduced all operating expenses commencing in late 2022 and throughout 2023 to date.

As of Dec. 31, 2022, Titan had cash of $3.3-million, compared with $32.3-million at Dec. 31, 2021. The company has improved its cash position with the $7.5-million (U.S.) in proceeds from the licensing deal announced on May 26.

For the year ended Dec. 31, 2022, research and development (R&D) expenses were $33.0-million compared with $38.2-million in the comparative period. In 2022, R&D expenses were related to the development of the Enos system and the Enos 2.0 technology. In 2021, R&D expenses were related to the development of the Enos system and the development work required to achieve the milestones under a development agreement with Medtronic PLC.

For the three months ended Dec. 31, 2022, R&D expenses decreased to $6.3-million compared with $9.9-million for the for the three months ended Dec. 31, 2021. In the three months ended Dec. 31, 2022, R&D expenses related to the development of the Enos system. In December, 2022, as part of the strategic review process, the company implemented cost-cutting measures that reduced R&D expenses. In the comparative quarter, R&D expenses related to the development of the Enos system and the development work required to achieve the final milestone under the development agreement.

General and administrative (G&A) expenses were $11.8-million for the year ended Dec. 31, 2022, compared with $12.8-million in the comparative period. The decrease in G&A expenses is primarily related to a decrease in severance costs and professional and consulting fees, partially offset by an increase non-cash stock-based compensation.

G&A expenses decreased to $3.1-million for the three months ended Dec. 31, 2022, compared with $3.2-million for the three months ended Dec. 31, 2021. In the current quarter, an increase in non-cash stock-based compensation was offset by a decrease in severance costs and amortization.

The company's audited annual financial statements and MD&A (management's discussion and analysis) are available at SEDAR.

2023 annual meeting

As described in the distributed proxy materials, shareholders are entitled to notice of, and to vote at, the meeting and at any adjournment or postponement thereof if they were a shareholder of record as of the close of business on May 16, 2023. The directors have fixed 4 p.m. ET on June 28, 2023, or at least 48 hours, excluding Saturdays and holidays, before any adjournment of the meeting, as the time before which proxies to be used at the meeting (or any adjournment thereof) must be deposited with the company or with Computershare Trust Company of Canada.

Items to be presented and voted on at the meeting include the following:

1. Presentation of the audited financial statements of the company for the fiscal year ended Dec. 31, 2022;
2. Election of directors of the company for the ensuing year;
3. Appointment as auditor of BDO Canada LLP, the incumbent auditor of the company, and authorize directors to fix the remuneration of the auditor.

For further information regarding the matters to be acted upon at the meeting is set forth in the proxy statement and other proxy materials for the meeting, which are available on the company's website.

If you have any questions or require more information with regard to the procedures for voting, please contact Shorecrest Group, by (i) telephone at 1-888-637-5789 (North American toll-free) or 1-647-931-7454 (collect calls outside North America), or (ii) e-mail at contact@shorecrestgroup.com.

About Titan Medical Inc.

Titan Medical, a medical technology company headquartered in Toronto, Ont., with operations in Chapel Hill, N.C., has developed an expansive patent portfolio related to the enhancement of robotic-assisted surgery (RAS), including through a single-access point, and is currently focused on evaluating new opportunities to further develop and license its intellectual property.

We seek Safe Harbor.